In activity-based costing systems,the budgeted overhead rate for products is developed after considering indirect costs for ________.
A) production only
B) production and distribution only
C) all value chain functions
D) production and customer service only

Question

Quizplus · Accepted Answer

Activity-based costing systems consider all value chain functions, including production, distribution, and customer service, when developing the budgeted overhead rate for products. This allows for a more accurate allocation of indirect costs to products based on the specific activities that drive those costs.

In Activity-Based Costing Systems,the Budgeted Overhead Rate for Products Is